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Economy

Energy transition to lower EROI sources (v1.0)

Josh Floyd
This is the original model version (v1.0) with default "standard run" parameter set: see detailed commentary here and here. As of 2 September 2015, ongoing development has now shifted to this version of the model.

The significance of reduced energy return on energy invested (EROI) in the transition from fossil fuel to renewable primary energy sources is often disputed by both renewable energy proponents and mainstream economists.​ This model illustrates the impact of EROI in large-scale energy transition using a system dynamics approach. The variables of primary interest here are: 1) net energy available to "the rest of the economy" as renewable penetration increases [Total final energy services out to the economy]; and 2) the size of the energy sector as a proportion of overall economic activity, treating energy use as a very rough proxy for size [Energy services ratio].
This model aggregates energy supply in the form of fuels and electricity as a single variable, total final energy services, and treats the global economy as a single closed system.
The model includes all major incumbent energy sources, and assumes a transition to wind, PV, hydro and nuclear generated electricity, plus biomass electricity and fuels. Hydro, biomass and nuclear growth rates are built into the model from the outset, and wind and PV emplacement rates respond to the built-in retirement rates for fossil energy sources, by attempting to make up the difference between the historical maximum total energy services out to the global economy, and the current total energy services out. Intermittency of PV and wind are compensated via Li-ion battery storage. Note, however, that seasonal variation of PV is not fully addressed i.e. PV is modeled using annual and global average parameters. For this to have anything close to real world validity, this would require that all PV capacity is located in highly favourable locations in terms of annual average insolation, and that energy is distributed from these regions to points of end use. The necessary distribution infrastructure is not included in the model at this stage.
It is possible to explore the effect of seasonal variation with PV assumed to be distributed more widely by de-rating capacity factor and increasing the autonomy period for storage.

This version of the model takes values for emplaced capacities of conventional sources (i.e. all energy sources except wind and PV) as exogenous inputs, based on data generated from earlier endogenously-generated emplaced capacities (for which emplacement rates as a proportion of existing installed capacity were the primary exogenous input).

Energy EROI Economy

  • 4 years 9 months ago

Energy transition to lower EROI sources (v2.5)

Josh Floyd
A detailed description of all model input parameters is available here. These are discussed further here and here.

Update 14 December 2015 (v2.5): correction to net output basis LCOE calculation, to include actual self power demand for wind, PV and batteries in place of "2015 reference" values.

Update 20 November 2015 (v2.4): levelised O&M costs now added for wind & PV, so that complete (less transmission-related investments) LCOE for wind and PV is calculated, for both gross and net output.

Update 18 November 2015 (v2.3: development of capital cost estimates for wind, PV and battery buffering, adding levelised capital cost per unit net output, for comparison with levelised capital cost per unit gross output. Levelised capital cost estimate has been substantially refined, bringing this into line with standard practice for capital recovery calculation. Discount rate is user adjustable.

Default maximum autonomy periods reduced to 48 hours for wind and 72 hours for PV.

Update 22 October 2015 (v2.2): added ramped introduction of wind and PV buffering capacity. Wind and PV buffering ramps from zero to the maximum autonomy period as wind and PV generated electricity increases as a proportion of overall electricity supply. The threshold proportion for maximum autonomy period is user adjustable. Ramping uses interpolation based on an elliptical curve between zero and the threshold proportion, to avoid discontinuities that produce poor response shape in key variables.

Update 23 September 2015 (v2.1): added capital investment calculation and associated LCOE contribution for wind generation plant, PV generation plant and storage batteries.

**This version (v2.0) includes refined energy conversion efficiency estimates, increasing the global mean efficiency, but also reducing the aggressiveness of the self-demand learning curves for all sources. The basis for the conversion efficiencies, including all assumptions relating to specific types of work & heat used by the economy, is provided in this Excel spreadsheet.

Conversion of self power demand to energy services demand for each source is carried out via a reference global mean conversion efficiency, set as a user input using the global mean conversion efficiency calculated in the model at the time of transition commencement (taken to be the time for which all EROI parameter values are defined. A learning curve is applied to this value to account for future improvement in self power demand to services conversion efficiency.**

The original "standard run" version of the model is available here.

Energy EROI Economy

  • 4 years 3 months ago

Entropy and Negative Feedback may stop Growth soon

Hanns-Jürgen Hodann

Economic growth cannot go on forever, although politicians and most economist seem to think so. The activity involved in economic growth necessarily  generates entropy (disorder and environmental degradation). Entorpy in turn generates powerful negative feedback loops which will, as a response from nature, ensure that economic activity will eventually grind to a complete halt.  In these circumstances organised society cannot persist and will collapse. The negative feedback loops shown in this graph have already started to operate. The longer economic growth continues unabated, the more powerful these negative feedback loops will become. How long can economic growth continue before it is overwhelmed? It may not be very far in the future.

Economy Environment Climate Change Entorpy.

  • 8 months 3 weeks ago

THE ILLUSION OF A U.S. PUBLIC DEBT MOUNTAIN.

Hanns-Jürgen Hodann
Neoliberalism uses a deceptive narrative to declare that money the government spends into the economy in excesses of the taxes it collects creates a ‘government debt’. In fact, the money the government spends into the economy in excess of the taxes is an income, a benefit for the private sector. When the government issues bonds, the money the private sector uses to buy them via banks comes from a residual cushion of dollars that the government already spent into the economy but has not yet taxed back.  If this were not the case, if the government had taxed back all the money it spent into the economy, then the economy could not function. There would be no dollars in the economy, since the government is the sole supplier of U.S. dollars! In the doted rectangle in the graph you can see that the dollars paid to the government for bonds sits in a dollar asset account. When the government issues bonds it simply provides the public and institutions with a desirable money substitute that pays interest i.e. Treasury bonds. It is a swap of one kind of financial asset for another. To register this swap the government debits the dollar asset account and credits the bond account.  When the time comes to redeem (take back) the bonds, all the government does is revers the swap, and that’s all!  When you look at the total amount of finacial assets in the private sector,  these remain constant at $ 25 BN  after the payment of $ 5 BN taxes. This implies that  no lending of financial assets of the private sector to the government has taken place during the swap operation. The money was always there. The debt mountain is an illusion!

Finance Economy

  • 9 months 3 weeks ago

Energy transition to lower EROI sources (v2.6)

Josh Floyd
A detailed description of all model input parameters is available here. These are discussed further here and here.

Update 29 June 2016 (v2.6): Added historical emplacement for wind and PV capacity. The maximum historical emplacement rates are then maintained from year 114/115 until the end of the model period. This acts as a base emplacement rate that is then augmented with the contribution made via the feedback control mechanism. Note that battery buffering commences only once the additional emplacement via the feedback controller kicks in. This means that there is a base capacity for both wind and PV for which no buffering is provided, slightly reducing the energy services required for wind and PV supplies, as well as associated costs. Contributions from biomass and nuclear have also been increased slightly, in line with the earlier intention that these should approximately double during the transition period. This leads to a modest reduction in the contributions required from wind and PV.

Added calculation of global mean conversion efficiency energy to services on primary energy basis. This involves making a compensation to the gross energy outputs for all thermal electricity generation sources. The reason for this is that standard EROI analysis methodology involves inclusion of energy inputs on a primary energy equivalent basis. In order to convert correctly between energy inputs and energy service inputs, the reference conversion efficiency must therefore be defined on a primary energy basis. Previously, this conversion was made on the basis of the mean conversion efficiency from final energy to energy services.

Update 14 December 2015 (v2.5): correction to net output basis LCOE calculation, to include actual self power demand for wind, PV and batteries in place of "2015 reference" values.

Update 20 November 2015 (v2.4): levelised O&M costs now added for wind & PV, so that complete (less transmission-related investments) LCOE for wind and PV is calculated, for both gross and net output.

Update 18 November 2015 (v2.3: development of capital cost estimates for wind, PV and battery buffering, adding levelised capital cost per unit net output, for comparison with levelised capital cost per unit gross output. Levelised capital cost estimate has been substantially refined, bringing this into line with standard practice for capital recovery calculation. Discount rate is user adjustable.

Default maximum autonomy periods reduced to 48 hours for wind and 72 hours for PV.

Update 22 October 2015 (v2.2): added ramped introduction of wind and PV buffering capacity. Wind and PV buffering ramps from zero to the maximum autonomy period as wind and PV generated electricity increases as a proportion of overall electricity supply. The threshold proportion for maximum autonomy period is user adjustable. Ramping uses interpolation based on an elliptical curve between zero and the threshold proportion, to avoid discontinuities that produce poor response shape in key variables.

Update 23 September 2015 (v2.1): added capital investment calculation and associated LCOE contribution for wind generation plant, PV generation plant and storage batteries.

**This version (v2.0) includes refined energy conversion efficiency estimates, increasing the global mean efficiency, but also reducing the aggressiveness of the self-demand learning curves for all sources. The basis for the conversion efficiencies, including all assumptions relating to specific types of work & heat used by the economy, is provided in this Excel spreadsheet.

Conversion of self power demand to energy services demand for each source is carried out via a reference global mean conversion efficiency, set as a user input using the global mean conversion efficiency calculated in the model at the time of transition commencement (taken to be the time for which all EROI parameter values are defined. A learning curve is applied to this value to account for future improvement in self power demand to services conversion efficiency.**

The original "standard run" version of the model is available here.

Energy EROI Economy

  • 3 years 11 months ago

Energy and Economic Activity

Hanns-Jürgen Hodann
The statement that there can be no economic activity without  energy and that fossil fuels are finite contrasts with the fact that money is not finite and can be created by governments via their central banks at zero marginal cost whenever needed.

An important fact about COAL, GAS and OIL (especially when produced via fracking) is that their net energy ratios are falling rapidly. In other words the energy needed to extract a given quantity of fossil fuels is constantly increasing. The falling ratio 'EROI' (Energy Return on Energy Invested ) provides yet another warning that we can no longer rely on fossil fuels to power our economies. In 1940 it took the energy of only one barrel of oil to extract 100. Today the energy of 1 barrel of oil will yield only 15. We cannot wait until the ratio falls to 1/1 before we invest seriously in alternative sources of energy, because by then industrial society as we know it doday will have ceased to exist. An EROI of 1:1 means that it takes the energy of one barrel of oil to extract one barrel of oil - oil production would simply stop! 


Energy Economy Fracking

  • 2 years 6 months ago

Energy transition to lower EROI sources (v3.1)

Josh Floyd
Update 24 Feburary 2016 (v3.1): This version has biomass, hydro and nuclear continuing at pre-transition maxima, rather than increasing. The combined emplacement rate cap for wind and PV is set at a default value of 5000 GW/year.

Major update 12 December 2015 (v3.0): This new version of the model overhauls the way that incumbent energy source (fossil sources plus biomass, hydro electricity and nuclear electricity) supply capacity is implemented. This is now based on direct (exogenous) input of historical data, with the future supply curve also set directly (but using a separate input array to the historical data). For coal and natural gas fired electricity, this also requires that the simple, direct-input EROI method be used (i.e. same as for coal and NG heating, and petroleum transport fuels).

Note that this new version of the model no longer provides a historical view of the emplacement rates for energy supply sources other than wind and PV, and therefore no longer allows comparison of required emplacement rates for wind and PV with incumbent energy sources. Output data relating to this is available in model version v2.5 (see link below), for the specific transition duration built into that version of the model.

The previous version of the model (version 2.5) is available here.

The original "standard run" version of the model (v1.0) is available here.

Energy EROI Economy

  • 4 years 3 months ago

BRANDED LIFESTYLE HOLDINGS LIMITED: STRATEGIC TRANSFORMATION IN CHINA

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TMA 02: BRANDED LIFESTYLE HOLDINGS LIMITED: STRATEGIC TRANSFORMATION IN CHINA

Learning Objectives

The primary purpose of this case is to teach students about the key strategic planning frameworks used in strategic management, including those used in external analysis (industry, suppliers, customers, and competitors) and internal analysis (resources, capabilities, and firm value chain). This case outlines the strategic planning process in order to enhance students’ ability to develop appropriate business strategies from Units 3 and 4. After working through the case and assignment question, students should be able to:

1.        Discuss the major activities in the strategic management process.

2.        Conduct strategic analysis using various analytical frameworks for external analysis (political, economic, socio-cultural, and technological analysis and Porter’s Five Forces) and internal analysis (resource-based view analysis, firm value chain, and core competence analysis).

3.        Develop a comprehensive business-level strategy based on sound strategic analysis.

 Word limit: 2500 words.

 This assignment is based on the case study Branded Lifestyle Holdings Limited: Strategic Transformation in China. This TMA will contribute towards the achievement of BB835 Learning Outcomes 7A2, 5, 6; 7B2; 7C2; 7D3. There are two tasks that you must perform to complete this assignment. The tasks involved in this TMA have been designed to provide you with practice in answering the types of questions you will face in the BB835 examination.

Task One: General Environment and Industry (1750 words, 60 marks)

1.        Shivkumar must carefully evaluate the general consumer trends in China. What are some opportunities and threats facing an apparel retailer such as Branded Lifestyle Holdings Limited?

2.        Is the Chinese apparel retail industry attractive? What should an apparel retailer do to succeed in this market?

Task 2: Creating and Sustaining Competitive Advantage (750 words, 30 marks)

3.        What are Branded Lifestyle’s key resources, capabilities, and weaknesses? Analyse the company’s performance, and compare it to key competitors.

Notes on answering TMA 02

Your assignment should be prepared in a report format.

This assignment builds upon skills you have developed from the activities in the units of BB835 that you have studied so far. As you prepare your answers for this assignment, ensure that you make use of the concepts you have read about and used, as well as the insights you have gained, during your BB835 studies up to this point. All of the units that you have read so far are relevant. However, in this assignment you should demonstrate a particular understanding of Units 3 and 4, which focuses on the internal analysis of an organisation and all aspects of resources and capabilities of the organisation and their relevance to strategy is discussed.

This TMA specifically tests strategic thinking skills and the ability to apply module concepts to understand the situation facing the case organisation, developing insights in the process and then using those insights to offer your perspective on what the case organisation should do and why. This aspect of the TMA task, offering your own view on how the case organisation should act, is an important measure of your ability to think strategically and construct a supported argument.

You are required to draw explicitly on relevant BB835 models, concepts and theories to support your analysis, conclusions and recommendations. In answering the tasks, it is important that you draw upon all of the information provided in the case study, including appendices and any statistical and financial data that is relevant to the assignment.

Your assignment should not exceed 2500 words in total. The 2500 words exclude appendices, which should not be excessive; your application of frameworks should not be presented in appendices.

                         A CASE STUDY OF BRANDED LIFESTYLE LIMITED.

 

Introduction

Daily, new businesses rise to occupy different levels within the market, going as far as the global market. On the other hand, other companies that might have once held the world stage fall into oblivion, never to recover. Some even experience stunted growth for several years. The survival and growth of a business are usually dependent on various factors. These factors, both external and internal, have significant sway on an organization. These factors are what can make or break a business within any industry. Any business should, therefore, consistently take them into account and consider what should be improved on and what should be done away with.

Various tools can be used to do these analyses. Two of these are the Porter’s Five Forces model and SWOT Analysis. This document intends to make use of these two tools to analyze the apparel company, Branded Lifestyle Limited, and the general apparel industry in China. The article begins with a brief history of the company and how it has evolved to its current state. It then looks deeply into the Chinese apparel industry; this will be done using the Porter’s Five Factor model, before getting to look into Branded Lifestyle using SWOT analysis.

 

Overview of Branded Lifestyle Holdings Limited

Branded Lifestyle Limited is an apparel retail company that was founded in 2011. This was after the acquisition of Hang Ten Group Holdings Limited by Fung Retailing. Fung Retailing Limited is the retailing branch of Fung Holdings Limited. Fung Holdings, which is the parent company, was established in 1906 as a family business, transformed into a trading company in the 1970s, and later on, in the next decade, expanded into logistics, distribution, and retailing. They offered these services throughout the Asia-Pacific region. The decision to move into designing, developing, and distributing branded apparel and footwear in 2005 was based on their experience in supply chain management. During its acquisition in 2011, Hang Ten had 792 stores across six countries. These countries, China, Taiwan, Hong Kong, Singapore, Malaysia, and South Korea, form the six markets in which Branded Lifestyle currently operates. The company has five apparel brands which it sells to these markets. They include Hang Ten, H: Connect, Arnold Palmer, LEO, and Roots. Out of all the brands, Hang Ten has taken the majority of the share in Branded Lifestyle’s business. These brands have remained profitable in most of the company’s Asian markets, except for China, where it has been struggling.

 

Overview of the apparel industry in China.

The emergence of Asian apparel brands in the 1980s catapulted the growth of the apparel industry in the region. The contribution of these brands, Giordani, Uniqlo, and Metersbonwe to the growth of the Asian market, further led to the influx of other international clothing brands like Gap, H&M, and Zara.

In the decade between 2003 and 2013, the Chinese apparel industry has grown at a steady rate of over eleven percent each year. It was a $122 billion industry as of 2013. The market comprises more than six thousand brands, which makes it very competitive. This competition has made even the most prominent brands have a tiny share of the market. The top brand, Metersbonwe, has only been able to gather less than two percent of the market share. A majority of the apparel brands in China outsource their production to apparel manufacturers, some of who made their brands. Other manufacturers, especially the small scale ones, chose to sell their none branded products online.

The Chinese market consists of both the online retail stores and the traditional brick and mortar stores. The major cities like Beijing, Guangzhou, and Shanghai had more retail outlets in comparison to other smaller cities. This made online retail more vibrant in smaller cities, in contrast to the larger cities.

 

Consumer Trends in China.

With China being named the second-largest economy in the world by 2014, a fete it achieved over a two-decade period of constant economic growth, there has been a rise in disposable household income. Coupled with its large population of over 1 billion people, it is a retailer’s paradise for a wide variety of products and services. There are four classes into which Chinese consumers can be placed, depending on one’s disposable income. An individual is either a poor, a value, a mainstream, or an affluent consumer. Value consumers make up the most significant percentage of the market (82%), while affluent consumers take up the smallest share (2%).

The most significant expenditure on clothing was attributed to those between the ages of 20 and 30. They considered fashionable products with reasonable price tags. These preferences, however, varied depending on the regions. Most garment purchases were made in department stores and particular retail stores. There was also an upsurge in e-commerce in the preceding few years. The largest share of the market was occupied by casualwear for the mass market. Luxury wear took the least share but had witnessed a steady spike recently, making it the fastest growing apparel segment.

 

Continue..

 

 

The attractiveness of the Chinese Apparel Industry.

While considering the attractiveness of the apparel industry in China, the Porter’s Five Factor model was the best fit for its analysis. It was determined to be the most ideal in discerning the competitiveness and whether the industry is profitable or not.

Suppliers in the Apparel Industry.

Owing to the massive number of apparel brands in China, six thousand brands, there is an equivalently large number of suppliers to meet this demand. The suppliers are manufacturers who are contracted to make the apparel for the various retail companies. Several manufacturers make non branded clothing. Anyone willing to get into the industry has a wide variety of suppliers to choose from. Those who are already in the industry can also easily move from their current supplier to a cheaper alternative.

Buyer Power.

The population in China, 1.36 billion people, is a vast market for a retailer. These people are divided into four consumer categories; poor, value, mainstream, and affluent. The value consumers make up the majority of the potential purchasers and, therefore, can easily sway the prices within the industry. This population prioritizes fashionable garments that are reasonably priced. They can, therefore, effortlessly shift to a rival retailer who is offering a cheaper alternative of the same or higher quality. The large customer base limits the power of the customers to dictate the terms of service to the retailers.

 

 

Continue..

 

The threat of Substitution.

The apparel industry cannot be threatened by substitutes since clothes have no replacements. The competition from rivals is, therefore, the only main threat. The threat of substitution for apparel retailers like Branded Lifestyle in China is the major apparel manufacturers. Apart from supplying garments to retailers, they also manufacture their brands. These manufacturers can easily sell their brands to consumers at a lower price, thereby undermining retailers. 

The threat of New Entries.

The entrants into the Chinese apparel market have been international brands that have captured the changing consumer preferences. These brands have taken up significant market share with their fashionable clothing that comes at a relatively lower price. These brands also can set up shop in various locations within a short time hence having a broader reach in the market compared to those that have been in the market for a more extended period.

Competitive Rivalry.

Competition within the clothing industry in China is very stiff, with over six thousand brands of clothing that are all potential rivals within this market. The most significant competitors, however, are international brands like Zara and Uniqlo. These brands can design and come up with finished products within a month; this is a fast rate that most local brands cannot catch up with. The standard rate of work for the local brands entails the designing and production of new items of clothing within six months and three months, respectively.

 

 

Continue..

 

SECTION 2

SWOT Analysis.

The use of SWOT analysis was implemented in the case of analyzing the performance of Branded Lifestyle Limited in the apparel industry in China.

 

 

Strength.

Branded Lifestyle had a minimal advantage over its competition when Shivkumar took over as managing director of global brands. There is nothing new that they offered that their rivals did not. However, they had several international apparel brands within their portfolio, which were trendy. This was an advantage over the other 6000 brands within the market. Their Hang Ten brand was reminiscent of the Californian lifestyle, something that the younger Chinese population would be drawn to. The H: Connect brand, on the other hand, represented the Korean popular culture, which had attracted some interest from the Chinese market. Owing to the variety of brands they had in their portfolio, Branded Lifestyle could easily direct their resources to the one that was in trend at a particular time.

The few selling points by Branded Lifestyle acted as an advantage to them. They could quickly expand into various regions without necessarily having to close down many shops if any. The new strategy they could develop could, therefore, easily fit into the current minimal expenses, overheads

 

Weaknesses.

Previously, the marketing team for Branded Lifestyle’s Chinese market had all come from Taiwan. They tried to replicate the success they had in Taiwan in the Chinese market without considering the needs of the local market. The trends in Taiwan were simply considered for the market in China without considering the widened disparities. There was minimal strategy that had been put in place to expand the Chinese operations. The person in charge was more concerned with the daily activities of the firm rather than scaling the business.

The management team was aware of the inconsistency between what they offered and what the consumers needed, but they had very little authority to make the relevant changes. The resources allocated to them were also very meager and could hardly do anything in terms of change implementation. They simply operated on the mantra of reducing losses while keeping the business afloat for as long as they could. The lack of ambition by the employees also played a significant part in weighing down the business.

The lack of a vision for the Hang Ten brand in china resulted in the making of an inferior brand awareness strategy. Besides, the lack of resources only made the situation. The management did their branding on a ‘one-fit-all’ basis. There were no branding campaigns that were tailored for the Hang Ten brand in the Chinese market. The china operations simply assumed that the brand was well known, and opening up stores without creating awareness would drive in customers. The result of this was more inventory and minimal sales, hence more losses.

Branding Lifestyle had just a little over one hundred shops in China, most of which were in the tier 1 cities of Shanghai and Guangzhou. The operational costs in these cities were very high while sales remained low. The continued losses experienced by the company forced them to move to locations with less foot traffic, which deepened the sales further.

 

 

Continue..

Opportunities.

As much as there are many brands in China, Branded Lifestyle still has a lot of opportunities it can grab. There is still a lot of market for their goods in tier 2, 3, and 4 cities where most of the value consumers are located. These cities have also witnessed a spike in online purchases due to insufficient brick and mortar stores in those areas. The company should, therefore, consider expanding its retail distribution to these prime locations.

In the top tier cities, it has been observed that most foot traffic is found in new shopping malls. With the boost in commercial real estate in these areas, there are several malls from which Branded Lifestyle can choose from. They should keep in mind that the perfect location is the popular ones. They can quickly move up their operations from the current lesser-known areas to these locations.

With the rise in smartphone users all across china, Branded Lifestyle should consider moving some of its operations online. Opening up an e-commerce store will enable them to cover a wider geographical area and more customer base. This is less expensive, considering the cost of real estate in China and will help them keep their operational costs low while maximizing their profits.

Threats.

The operational costs in tier 1 cities of Shanghai and Guangzhou are quite high while the sales are meager. Keeping up with their current trend of opening up stores in these cities will only deepen Branded Lifestyle’s losses. There has been a significant rise in the entry of international brands into the Chinese market. This has been fueled by the shift in consumer preferences to these brands. Even though the company sells international brands, it should strive to raise itself to a level playing field where it can compete fairly with these brands.

 

 

Conclusion.

The Chinese apparel industry has experienced exponential growth fueled by the increased disposable household income by consumers due to the improved economy. The high population has enabled the clothing industry to become very diverse with shifting trends. The most recent trends in the Chinese market have been towards international brands. There has been an upsurge of setting up shop by these global brands. These brands have come into the scene with the ability to design and manufacture clothes at a fast rate, which the local brands cannot sustain. There are over six thousand apparel brands in China, most of which outsource their production to manufacturers within the country.

 Branded Lifestyle Limited is an apparel retail company with several international brands within its portfolio. It has not been performing profitable for quite a while now. A new management team has been put in place to turn the situation around. Upon analysis of the business, they realized that the company had no strategic vision, and there could not tailor their operations for growth. The resources allocated to them were also very minimal. The previous team had also concentrated most of their services in the tier 1 cities where the operational costs surpassed the sales. However, the business was still positioned in a way that it could leverage some of its strengths and resources to achieve profitability. 

 

 

 

                                    References.

Branded lifestyle holdings limited: strategic transformation in china (2018). Ivey Publishing.

WARNING!

Warning, this is an example paper that was written by a novice writer. It is posted online because the writer did not get paid for a similar task.

Learning Business Management Technology Sustainability Finance Economy

  • 4 months 1 week ago

Energy transition to lower EROI sources (v3.0)

Josh Floyd
Major update 12 December 2015 (v3.0): This new version of the model overhauls the way that incumbent energy source (fossil sources plus biomass, hydro electricity and nuclear electricity) supply capacity is implemented. This is now based on direct (exogenous) input of historical data, with the future supply curve also set directly (but using a separate input array to the historical data). For coal and natural gas fired electricity, this also requires that the simple, direct-input EROI method be used (i.e. same as for coal and NG heating, and petroleum transport fuels).

Note that this new version of the model no longer provides a historical view of the emplacement rates for energy supply sources other than wind and PV, and therefore no longer allows comparison of required emplacement rates for wind and PV with incumbent energy sources. Output data relating to this is available in model version v2.5 (see link below), for the specific transition duration built into that version of the model.

The previous version of the model (version 2.5) is available here.

The original "standard run" version of the model (v1.0) is available here.

Energy EROI Economy

  • 4 years 4 months ago

Why Affiliate Marketing is The Best Option for Kenyans Locked by CoronaVirus Pandemic

Proff R
Have you ever heard of earning passive income while you sleep or while you concentrate on other jobs, including full-time employment, and especially now that many Kenyans have lost their jobs due to Covid19 pandemic and are forced to work from home?

This is affiliate marketing or simply niche marketing. With your blogging and marketing skills, you can write good product reviews and guides that attract willing buyers, who purchase the products you promote on your website, by clicking the links that transfer them to the merchant site where they pay and receive the products.

What is Affiliate Marketing?

Affiliate marketing can be described simply as a business where you promote products belonging to other people via an affiliate network for a commission. It is a way of making some money by selling products through your website to the merchant website. Often, you are provided with a unique id that is found on the links you place on your site, which track the number of sells made through your website successfully to the merchant site. You end up sharing the profits made from selling the product through your website.

What are the Examples of Merchants or Affiliate Networks?

There are many merchants and affiliate networks available for you in Kenya. Of course, you can consider joining the merchant overseas, for example, Amazon, Clickbank, Share a Sale, Click Junction and many more. Personally, I joined the Amazon Associates Program, and I am planning to join other programs as well to build on my commissions. I blog about products that provide solutions to people diagnosed with Hyperhidrosis or excessive sweating on my website Always Sweating? Find a Fresh Solution Today.

There are still other locally available merchants and affiliate networks that you can explore. To find them you need to check for companies that sell different products at a large scale, sort of an online supermarket and you will find that they have an affiliate department where you can join and help promote their products for a commission in exchange. You can also check for sites that offer deals in Kenya and join their affiliate programs at a commission. Some of the examples to check include Jumia.

How can I Join Affiliate Marketing?

Affiliate marketing has been in existence for some time now, especially in Kenya. Mostly, whenever we hear of online writing or online employment opportunities, we tend to think that they only come from overseas. However, with a clear understanding how you can join affiliate marketing in Kenya, then you will know how to seize this opportunity.

First, if you own a blog or a website that attracts high traffic or if you are willing to build a blog that will attract high traffic, you can join an affiliate network and begin promoting products assigned for a commission. It is simple, just like joining Facebook or opening a new email account. Most of the times, the affiliate networks or merchant sites do not charge a thing to join. Only what you need to have is your email, personal details, information about your website, the content of your website, the traffic, and the niche or the industry that you have specialized in. At times, you can be that blogger who tackles different niches or topics on your blog. No worries, you still can join. However, it is advisable to select one niche, which will help you become a pro or a professional in that niche. An authority niche receives high ranking as Google interprets that you are an authority in this niche.

How can I get Started with Affiliate Marketing in Kenya, Yet I am a Newbie?

If you are new and intend to start affiliate marketing, then worry not. All you need is to do some research on the most favorable industry you can blog about. An industry that you have knowledge or experience writing about is advisable as this will be easy to write about forever without getting bored. Find out whether many people have written about it or are talking about it. This will help you know how competitive it is to venture into that industry. If it is not competitive, you need to buy a domain, for example, on NameCheap, which is really cheap, about Ksh1000 or USD10 per year and you can pay for hosting for example with Site Ground, which charges about $50 per year or even locally, for example with Kenya Web Experts, who have packages that start from Ksh2100 per year, and build your website with Word Press, and off you go. Start blogging now. However, before you blog, the secret to rank highly is doing what we call keyword research to find keywords that are not competitive. You can use the Google Keyword Toolkit to help you find less competitive keywords to use in your articles.

Conclusion

Overall, affiliate marketing pays well, especially now when you need money the most. If you learn a little bit of search engine optimization, which is a technique for ranking your website on search engines, then you will be better placed in making passive income. You can later turn niche marketing into your full-time carrier and live entirely on the internet, as we always put it.

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Business Ecommerce Marketing Finance Economy Technology Management COVID-19

  • 4 months 3 weeks ago

LIMITS TO ECONOMIC GROWTH AND PROMINENT NEGATIVE FEEDBACK LOOPS

Hanns-Jürgen Hodann
To maintain economic wealth (roads, hospitals, power lines, etc.) power needs to be consumed. The same applies to economic activity, since any activity requires the consumption of energy. According to the Environmental Protection Agency, the burning of fossil fuels was responsible for 79 percent of U.S. greenhouse gas emissions in 2010. So whilst economic activity takes place fossil fuels will be burned and CO2 emissions are unavoidable - unless we use exclusively renewable energy resources, which is not likely to occur very soon. However, the increasing CO2 concentrations in the atmosphere will have negative consequences, such droughts, floods, crop failures, etc. These effects represent limits to economic growth. The CLD illustrates some of the more prominent negative feedback loops that act as a break on economic growth and wealth.  As the negative feedback loops (B1-B4) get stronger, an interesting question is, 'will a sharp reduction in economic wealth and unavoidable recession lead to wide-spread food riots and disturbances?'

Limits To Growth Energy Economy Global Warming

  • 3 years 6 months ago

IS GOLD A SAFE INVESTMENT

TBS GROUP
The systemic problem is to understand what influence the gold price?

Many articles say that the gold price is manipulated and some analysts predict that the bubble will burst. (1)

We think that understanding how gold can be influenced by different factors is an interesting research topic. The variation of the gold price is a real-world problem which evaluates through the interaction of a group of different elements.

It seems that the gold price is a very complex problem understanding. Of course everybody has his own thinking about the problem according to his own filter.

But this approach is most of the time not valuable because there is not a full view of all the variables and their link. In a context of a growing demand and a constant supply, be able to determine if gold price will continue to increase and if this asset will represent a safe investment for the new decade.

In September 2011, gold price surged a record, $1,274,75 an ounce. According to the Commodities guru George Soros “gold was the ultimate bubble" and was no longer a safe investment.

On the other hand, the research conducts by metal consultant GFMS predicted that gold will hit a new record of $1,300 an ounce. (2)

Who was right? Both of them. 

This example illustrates how complex is the problem.

At the time of this research the price of gold is $1,316,79 an ounce.

Wealthy persons are concerned by preserving their fortune, they also look to maximise their wealth and to keep it safe. Many options are available to investors, despite buillion is a popular asset on a long-term portfolio, nowadays is it gold a safe investment? That is a good question. Also understanding the impact of gold on the economy and how it is link to poverty might be interesting. To analyze an issue, one must first define it.

In order to get a better understanding of the gold price we will model this complex problem. Our goal is to visualize the interconnection of elements and be able to identify feedback loops with the aim to understand the complexity of the problem.

We will analyse different documents from various sources, underline variables and identify their relationships over time.

 


 (1) https://www.moneymetals.com/news/2017/04/28/who-controls-gold-price-001058

 

 (2) https://www.bullionbypost.co.uk/index/gold-investment/is-gold-a-safe-investment/

 

Finance Gold Economy USA FED

  • 2 years 6 months ago

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